Stock Price & Analysis

Based on the provided data, DraftKings (DKNG) stock shows mixed signals at the current price of $39.35.

Technical Analysis

• The stock is currently trading near its pivot point of $38.82, with immediate resistance at $41.03 (Fibonacci R1) and support at $36.61 (Fibonacci S1)
• RSI at 50.04 indicates neutral momentum
• MACD at -0.30 suggests slight bearish momentum in the short term

Recent Events & News

• A Democratic Senator has urged DraftKings to halt its in-flight gaming partnership with Delta Air Lines due to legal concerns, which could impact near-term growth prospects
• The company is launching DraftKings Sportsbook+, a subscription-based pilot program in New York during NFL playoffs, potentially creating new revenue streams
• Recent analyst ratings show mixed but generally positive sentiment:
  • Susquehanna maintained Buy with $54 PT (40.81% upside)
  • JMP Securities maintained Buy with $50 PT (34.23% upside)
  • TD Cowen maintained Strong Buy with $55 PT (31.86% upside)

Recommendation Given the current technical setup and mixed catalysts, selling DKNG at current levels would be prudent. The stock is showing signs of potential weakness with negative MACD, and the recent regulatory concerns could create near-term headwinds. Better entry points may present themselves if the stock pulls back to the Fibonacci S1 support level at $36.61.

Based on the provided data and references, here is the price prediction for DKNG stock in 2025:

DraftKings (DKNG) is expected to reach $51-53 by end of 2025, driven by strong revenue growth projections of $6.2-6.6 billion and positive free cash flow of $850 million. The company's exclusive NFL partnership, improving margins, and expansion into new states like Missouri support this bullish outlook.

The stock currently trades at $39.29 with strong technical support at $36.61 based on Fibonacci levels. The RSI of 50.04 indicates neutral momentum, suggesting room for upside.

The S1 support level for DKNG Stock is $38.55 ,The R1 resistant level for DKNG Stock is $41.72.

As of the end of day on 2025-01-24, the price of DKNG Stock was $41.23.

The target price for DKNG Stock according to analyst rating is 51.24, with the highest price target at 60.00 and the lowest at 36.00. Analysts have a Strong Buy rating on DKNG Stock overall.

The market cap of DKNG is $20.2B.

Based on the provided data and current market conditions, DKNG appears overvalued for several key reasons:

Technical Analysis

The stock is trading at $39.29, showing significant volatility and currently near its recent highs. The technical indicators suggest an overbought condition.

Valuation Metrics

The stock trades at a Price/Sales ratio of 4.14x (Q3 2024), which is relatively high for a gaming company still working towards consistent profitability. The Price/Book ratio of 17.75x also indicates a premium valuation.

Analyst Sentiment

While analysts maintain generally positive ratings with an average price target around $52, recent price target revisions have been mixed, with several firms lowering their targets due to:

• Unfavorable December 2024 results for bookmakers
• Concerns about Q4 2024 revenue misses
• Historical pattern of missing guidance in recent quarters

Key Concerns

• The company has missed revenue estimates in four of the last five quarters
• Recent NFL season showed historically unfavorable winning percentages for sportsbooks
• Current valuation appears to price in significant future growth expectations

Conclusion At current price levels around $39, DKNG appears overvalued given its operational challenges and mixed execution track record, despite its strong market position in online sports betting.

DraftKings Inc. is a digital sports entertainment and gaming company. The Company provides users with online sports betting (Sportsbook), online casino (iGaming) and daily fantasy sports (DFS) product offerings, as well as retail sportsbook, media and other consumer product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 24 states and in Ontario, Canada. Its iGaming product offerings typically include the full suite of games available in land-based casinos, such as blackjack, roulette, baccarat and slot machines. DFS product offering facilitates peer-to-peer play, whereby contestants compete against each other for prize money. The Company also offers non-fungible tokens (NFTs) on DraftKings Marketplace (Marketplace), NFT-based DFS-style contests, gaming software services, and advertising and sponsorship packages to targeted advertisers across its DFS product offering, free games, and media content.

Based on the provided data and market research, here's a price prediction analysis for DKNG stock by 2030:

DraftKings (DKNG) stock is projected to reach approximately $85-95 by 2030, driven by the company's expected revenue growth of 27-35% annually through 2025 and continued expansion into new markets as more states legalize online gaming. The company's improving profitability metrics, with expected FCF of $850 million by 2025 and strong market position as America's second-largest EV brand behind Tesla, support this long-term bullish outlook.

The stock's growth trajectory is further supported by DraftKings' strategic expansion into new jurisdictions like Missouri and potential future markets such as California and Texas, which could significantly expand its total addressable market beyond the current $39.81 billion industry projection by 2029.

DKNG has a total of 4400 employees.